QUESTION 1

Case Study: Apple Inc.

Apple is a world leader in producing innovative electronic goods and technology. The company utilizes outsourcing through the manufacturing of its products overseas. A well-known conflict involving Apples suppliers is the suicides at Foxconn. Foxconn is the largest contracted electronics manufacturer in the world, it is the manufacturer of iPhones and iPads and employs over 500,000 workers.

Concerning workers health and safety conditions at the suppliers, in May 2010 two workers were killed and sixteen employees were injured during an explosion at Foxconn. An Apple spokesperson stated: We are deeply saddened by the tragedy at Foxconns plant in Chengdu, and our hearts go out to the victims and their families. We are working closely with Foxconn to understand what caused this terrible event. In the same month, The Guardian reported that workers from Wintek had been poisoned by n-hexane, a toxic chemical used to clean the touch screens of iPhones. The employees complained that the compensation Wintek offered for the health damage was not sufficient. The workers who did receive compensation were asked to resign from their jobs.

As a result, Apple has made the Form 10-K annual report available on its website. The Form 10-K contains amongst other things information on Apples purpose of the corporation. Apples business strategy includes the companys risk factors, legal proceedings and financial data. It also includes the business conduct policy of Apple: Apple conducts business ethically, honestly and in full compliance with all laws and regulations. This applies to every business decision in every area of the company worldwide. Furthermore, the business conducts deal with corporate governance, information disclosure, non-corruption and bribery, environmental health and safety.

QUESTION 5

Demonstrate how Apple Inc. showed in the case study that the company had implemented the Integrative Model of CSR towards the issues of Apples suppliers?

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